A nursing home chain backed by businessmen Dermot Desmond, Denis Brosnan, John Magnier and JP McManus is reportedly a front-runner to buy the Priory chain of rehabilitation centres in Britain for up to £650 million (€965 million).
The deadline for first-round offers for the Priory will fall today. The Barchester group, which was founded by Mr Brosnan and Mike Parsons in the early 1990s, is reported to be one of about eight interested parties.
The company has for a number of months been linked to a possible bid for the Priory, which has counted celebrities such as model Kate Moss among its clients.
Last autumn, Barchester became one of the top three companies in its sector when it bought rival Westminster in a €750 million deal.
In March Mr Parsons said Barchester was keen to grow the psychiatric side of its business, both organically and through acquisition.
He was speaking after the firm raised £170 million in a rights issue to fund its expansion. Later that month, the firm pulled out of a £100 million bidding war for UK nursing home chain Bettercare.
A report in the Times newspaper yesterday described Partnerships in Care, the UK's biggest chain of mental health hospitals, as another front-runner for the Priory.
Other potential bidders mentioned were venture capital group BC Partners and Allianz Capital Partners.
The sale is being handled by investment bank NM Rothschild.
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